The FTSE 100 closed up 60.27 points at 7523.81 as Brexit talks kicked off and Emmanuel Macron notched up a convincing win in the French assembly election,

The man in charge of leading the process, Brexit secretary David Davis, has gone over to Brussels to start formal negotiations with his European Union counterparts.

The pound slid against the dollar in today's session to trade at $1.2741.

Tanya Jefferies

Host commentator

Alex Sebastian

Host commentator

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17:38

French election result buoys markets

The FTSE 100 closed up 60.27 points at 7523.81, as the success of President Emmanuel Macron's party in the French legislative elections convinced investors of growing political stability on the continent.

The French Cac 40 and German Dax rose by 0.9 per cent and 1 per cent respectively.

Investors were also keeping an eye on the Brexit negotiations, which kicked off on Monday with the UK's David Davis meeting the European Commission's chief negotiator Michel Barnier in Brussels.

Sterling weakness also buoyed the FTSE 100, as listed multinational firms tend to benefit when earnings in foreign currencies are stronger.

The pound was down 0.3 per cent versus the US dollar at $1.273, but was flat against the euro at €1.141.

ON oil markets, Brent crude prices edged higher by 0.2 per cent to €47.38 US dollars per barrel, despite continued concerns about oversupply in the global market, raising concerns about how long the upturn will last.

Sainsbury shares were one of the best performers on the FTSE 100, rising 5.7p to 258p after reports emerged the supermarket has tabled a £130 million bid to acquire convenience store operator Nisa.

Standard Life shares climbed 9.3p to 398.6p, while shares in Aberdeen Asset Management jumped 14.3p to 299.7p, after shareholders overwhelmingly backed an £11billion tie-up between the two financial services firms at general meetings on Monday.

Ocado shares were the biggest riser on the FTSE 250, soaring 30.6p to 306.4. It comes after Ocado was handed a broker upgrade from Exane on the prospect of the online grocer striking a partnership deal with Amazon, following the retail giant's own swoop for Whole Foods.

Bonmarche shares fell 0.25p to 96.25p after reporting a 39.4 per cent drop in annual pre-tax profits to £5.8million, as a combination of Brexit pressures and unseasonal weather weighed on the womenswear retailer.

The biggest risers on the FTSE 100 were Glencore up 8.2p to 287.95p, Wolseley up 119p to 4,884p, Standard Life up 9.3p to 398.6p, and Sainsbury up 5.7p to 258p.

The biggest fallers on the FTSE 100 were Hammerson, down 8p at 594p, Hikma Pharmaceuticals, down 19p to 1,624p, Paddy Power Betfair, down 95p to 8,525p, and Pearson, down 7.5p to 705.5p.

'The long-awaited beginning of discussions between the UK and the EU has been greeted with an impressive bounce for both UK and European stocks.

'The rally today has been broad-based, with European markets seeing a return of buyers after weeks of indecision. An ongoing fall in the euro is certainly helping to make life easier for European stocks, while further sterling weakness is helping to lift the FTSE 100.

'The summer is supposed to be a tough period for stocks, with gains fleeting in duration, but the solid pickup in risk appetite at the beginning of the week is very encouraging.

David Madden, market analyst at CMC Markets, said European equities wre buoyed by the political success of Emmanuel Macron in France.

'The news that Mr Macron’s party took the majority of the seats in the French assembly was welcomed by traders, as it represents political stability in one of the biggest counties of the EU.

'France’s economy didn’t fare too well under Francois Hollande, and investors are optimistic about the new French leader.

'The UK’s Brexit Secretary, David Davis, was hopeful going into the Brexit talks today, and seeing as himself and Michel Barnier exchanged gifts at their meeting, it would appear that the talks started off on the right foot.'

17:03

FTSE 100 closes up 60.27 points at 7523.81

16:04

Standard Life and Aberdeen Asset Management shares up

Shares in the companies are up 2 per cent and 4 per cent respectively after shareholders gave their merger the green light.

15:55

The FTSE 100 has powered on through the afternoon

London's leading index is 0.95% up at 7,534 with just over half an hour of trading left.

15:42

The Bank of England has named a new MPC member

London School of Economics Professor Silvana Tenreyro has been appointed as the latest member of the Bank of England's Monetary Policy Committee.

Cheered by Emmanuel Macron's easy win in the French election on Sunday, France's CAC 40 is up 1.03% to 5,317, while Germany's DAX is up 1.06% to 12,887 and Italy's FTSE MIB is up 0.55% to 21,054.

14:50

US markets have opened the week strongly

-The Dow Jones Industrial is up 0.32% to 21,453

-The Nasdaq Composite is up 0.95% to 6,209

-The S&P 500 is up 0.5% to 2,445

13:05

FTSE comes back in but still up for the day

As we hit the half way point for the day's trading the FTSE 100 has shed some of its early gains but remains 0.4% up at 7495.

12:29

Sainsburys shares recovering some ground

Shares in Sainsbury's are up 2.42% to 259p on reports the supermarket has entered into exclusive talks to acquire convenience store operator Nisa.

The company saw a big sell-off in its shares on Friday after it was revealed Amazon had made a move into the groceries space by buying Whole Foods.

12:02

The FCA will need a new chairman from March

Banking and financial sector watchdog the Financial Conduct Authority has announced its chairman John Griffith-Jones, who is also the chairman of the Payment Systems Regulator, will leave both roles next March.

He took on the role at the FCA in April 2013.

‘John Griffith-Jones has provided strong leadership to both Boards during his tenure, helping to establish them as key parts of the UK financial regulatory system,' Chancellor Philip Hammond said in a statement.

11:24

The BCC is weighing in on Brexit (again)

Director General of the British Chambers of Commerce Dr Adam Marshall said -

‘As Brexit talks commence, UK firms want practical economic issues to be at the heart of the negotiations. Business wants an atmosphere of pragmatism, civility and mutual respect to characterise this complex process.’

‘Over the coming weeks and months, the UK government must demonstrate how it is working to address the everyday considerations of British companies in the talks - who can they hire, whether their goods will be stopped at borders, and whether they will have to cope with extra costs.’

‘Parties on both sides should begin the negotiations by seeking to guarantee the rights of EU citizens already in the UK, and UK citizens in the EU-27. Swift agreement on citizens' rights would remove a highly emotive and politicised issue from the complex road ahead, while at the same time ending a year-long source of uncertainty for individuals, communities and employers alike.’

‘It’s important to remember that negotiations on some of the most crucial business issues, such as the nature of the future UK-EU trading relationship, won't begin straight away. We will continue to campaign for the priorities and concerns of business communities across the UK as negotiations continue - and ensure that their practical priorities are front and centre.’

11:01

The pound has edged up above $1.28

Perhaps encouraged by the positive tone of comments made by David Davis and others immediately ahead of the Brexit talks today the pound is edging upwards.

Sterling is up 0.16% for the session at $1.2804

10:30

Bonmarché suffers 40% profits fall as it is hit by Brexit and 'unseasonal weather'

As we get deeper into the session the FTSE 100 is holding its gains, sitting 0.66% up at 7514 points.

09:17

Co-op Bank closing in on rescue package

The Co-operative Bank said that it is in ‘advanced discussions’ with investors over a rescue package.

The bank said on Monday that the talks centre on a 'prospective equity capital raise and liability management exercise'.

The lender added that discussions are also ongoing regarding the separation of the Co-op Group pension scheme, which would clear the path for a takeover.

Reports had surfaced over the weekend that the struggling lender is close to announcing a £700 million deal that would see it dodge being wound down.

08:47

Could be tough for investors looking for early clues

The initial thoughts of ETX capital analyst Neil Wilson -

‘Where will the pound end up? With talks getting underway today, there are several possible scenarios for sterling based on where these talks take us.’

‘Brexit talks kick the week off in fairly dramatic fashion with the UK and EU officially beginning negotiations on the divorce. The big question is what alimony is due, who gets to keep the house and car, and where the kids should live. It’s not you it’s me, Britain is saying. The EU will take its perfidious partner back any time, although with stricter rules. The trust is gone. Some think it’s better off without an unreliable spouse anyway.’

‘So it’s in this acrimonious environment that the process begins and that is going to make it tough going for investors looking for clues about whether we get a soft or hard Brexit, something that is between the two, or no Brexit. It would be easier for Britain if it knew what it wanted in the first place.’

European Union chief negotiator Michel Barnier

08:42

FTSE 100 jumps at the start of the session

The blue-chip index has been up since the opening bell and right now sits 0.7% higher at 7516.